The Increase in Total Revenue Due to Increasing the Amount

question 102

Multiple Choice

The increase in total revenue due to increasing the amount of labor employed by one unit is called the

• A) Marginal Product.
• B) Marginal Revenue Product.
• C) Average Revenue Product.
• D) Total Revenue Product.

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Definitions:

Herring

A type of small, silver-colored fish, often found in the temperate waters of the Pacific and Atlantic Oceans, and commonly used in various culinary traditions.

Comparative Advantage

Comparative advantage is the ability of an individual or country to produce a particular good or service at a lower opportunity cost than others, forming the basis for specialization and trade.

Absolute Labor Productivity

The total output produced by a worker or workforce in a given time period, not adjusted for factors like hours worked.

Relative Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen, expressed in terms of the ratio between the cost of the chosen alternative and the cost of the next best alternative.